Auto Trader Soft end to FY26 on a challenging H2 - weak FY27 outlook to overshadow a step-up on shareholder returns

Research evidence excerpt

Auto Trader Soft end to FY26 on a challenging H2 - weak FY27 outlook to overshadow a step-up on shareholder returns

C A Z E N O V E Europe Equity Research

21 May 2026

Auto Trader Underweight

AUTOA.L, AUTO LN

Soft end to FY26 on a challenging H2 - weak FY27 Price (20 May 26):496p

outlook to overshadow a step-up on shareholder returns Price Target (Dec-27):515p

Our Take: The group has reported a soft set of FY26 results with revenue and European Internet

ACoperating profit shy of company-consensus (-1% and -2% respectively), largely Lara Simpson

reflecting a challenged H226, with Auto Trader recognising difficult trading (44-20) 7134-3637

conditions and retailer pressure regarding the Deal Builder product roll-out into lara.simpson@jpmorgan.com

year-end. While trading through April and May has improved, the outlook for J.P. Morgan Securities plc

FY27 reads cautiously across key metrics (ARPR +£125 YoY, retailer forecourts1- Marcus Diebel

2% lower) and is likely to disappoint and prompt a c.3-4% trim to consensus (44-20) 7742-4447

marcus.diebel@jpmorgan.com

expectations on group operating profit. As was widely expected, the group will J.P. Morgan Securities plc

accelerate shareholder returns, expecting to return c.£600m to shareholders

Thyagarajan J

through c.£500m in share buybacks while continuing to pay a third of net income (91-22) 6157-5005

in dividends (c.£100m) which should cushion some of the operational earnings risk thyagarajan.j@jpmchase.com

- we see a LSD% cut to consensus adj. EPS all-in. Overall, while the announced J.P. Morgan India Private Limited

buyback bodes well for the near-term narrative, we stay mindful of persistent Carmen Graves

operational headwinds, with a likely challenging start to the year, and await signs (44-20) 3493 0506